Life Is Strange Developer Don’t Nod Might Have to Lay Off 90 Employees as Money Runs Low

by
William D’Angelo
, posted 4 hours ago / 434 Views

Life is Strange developer Don’t Nod Entertainment in a newly released earnings report has warned it might have to lay off up to 90 staff and closure is possible as money runs low.

“Despite the measures already undertaken as part of its performance plan and the cost-cutting actions implemented, these efforts alone are not sufficient to restore Don’t Nod’s competitiveness on a sustainable basis,” reads the report.

“Against this backdrop, the profound changes in the economic conditions of the video game industry and its financing, combined with the deterioration of Don’t Nod’s key financial indicators, are significantly affecting its competitiveness. The Company therefore believes it is necessary to adapt its business model.

“With this in mind, Don’t Nod is refocusing its operations in France around a single production line, bringing together the expertise required to launch new projects before the completion of current productions. This organizational initiative is intended to maintain a continuous pipeline of projects and support the Company’s long-term growth.

“It aims to strengthen the Group’s operational efficiency by enabling a more efficient allocation of resources, clarifying responsibilities, and focusing expertise more intensely on priority projects.

“In this context, the transformation project currently under consideration could lead to a workforce adjustment in France that may involve the reduction of up to 90 positions.”

A report from an auditor released in June warned Don’t Nod is running out of money and will have used up its reserved in November unless it is able to find new funding. 

Don’t Nod is based in Paris, France and was founded in 2008. The studio most recently released Lost Records: Bloom & Rage in February 2025 and Aphelion in April 2026.

A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.

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